Nancy Powell 'regrets' circumstances of Devyani Khobragade's arrest

US ambassador Nancy J. Powell Tuesday expressed "regret" over the way Indian diplomat Devyani Khobragade was arrested and jailed for alleged visa fraud and underpaying her child's nanny.

Powell said in a New Year message to India that the forward movement in Indo-US relations has been "jolted by the very different reactions to issues involving one of your consular officers and her domestic worker.

"I join Secretary (of State John) Kerry in expressing our regret for the circumstances of the consular officer's arrest," she said in a brief statement.

"But we believe that we can look forward to continuing to expand our bilateral relations," she added.

She said she looked forward to increasing trade and investment including civilian nuclear cooperation, continuing consultations on Afghanistan and other key issues, expanding counter-terrorism and law enforcement cooperation, and encouraging more travel in both directions by students, business representatives and citizens.

Powell added: "I look forward in 2014 to joining with you in celebrating the multiple ways our two great nations can continue to build both a stronger and broader partnership. Happy New Year!"